India’s Ecommerce segment is driving the country towards global leadership with more than 500M customers. PGA Labs, a leader in India’s Technology and Internet space, presents the top 5 trends for Ecommerce in India in 2020.

1. #InstaGood

One of the fastest-growing social media networks which are rising as a key sales platform for this year is Instagram. Millennials’ favorite, Instagram has been picking up interest because of the speed and clutter-free shopping experience it offers. 29 percent of people prefer Instagram as one of the dependable sources to know more about makeup styles and trends, according to PGA Labs research. The items mostly shopped here are cosmetics, imitation jewelry, and apparel, by both women and men.

2. Social Commerce is driving sales

Virtual customers enjoy the handiness and amusement that comes from social commerce posts. E-shoppers are exposed to know about more products and brands while they are on social media. Social commerce, unlike Ecommerce, does not depend on redirecting links. It offers the users to check items right at that moment.

Social commerce platforms had US$ 300M GMV in 2018 in India as per PGA Labs research and many among them in the next 5 years will successfully tap the next 500M shoppers in India. The Whatsapp first approach is one such strategy, to tap the next 500M, especially customers from non-urban areas who bring consistency in audience growth, authentic engagement, and traffic, better customer loyalty and retention.

3. Bharat vs. India

Smartphones and internet penetration in tier I and II cities have increased manifold in the last decade. Confirming the next set of customers will come from these cities, being leveraged by the Ecommerce sector. Another crucial factor to note is the rise of India’s vernacular internet user base. According to PGA Labs research, 880M Indians will be searching in their vernacular languages on the internet by 2024, which is a rise of 11 percent.

It creates a strong case for Ecommerce players to direct these new users to engaging categories like technology, electronics, and fashion and lifestyle with the product description and user reviews made available in local Indian languages which would give them a better edge in visibility and further market penetration.

4. Mobiles for internet 

A mobile-first strategy is the order of the day for all businesses. India’s internet user base will reach 1.09B by 2024 and smartphone data usage will also rise exponentially. This gives a big push to mobile manufacturers to update and produce phones with more advanced technology at a faster rate.

Ecommerce players can use newer methods of promotions to reach out to the next 500M.  Mobile app-based marketing, mobile search ads, in-game mobile marketing, mobile image ads, QR codes, geo-based marketing, etc. with proper focus on the needs and choices of Gen Y and Z can help create the right push.

5. Generation X matters

While millennials are the darlings of this generation, one of the heavy spenders come from Generation X including the middle-aged between 35-45 years. This segment has a much higher spending capability, a better investment portfolio, and are internet savvy.

Five imperatives for marketers to tap parents of today’s millennials would be to tailor products that meet the unique value additions for this age group. Prioritizing delivery and extracting better pricing, personalizing products to increase offtake, envisioning a family understanding, creating unique customer experiences, and tapping the sell-through opportunities can help seal the deal.

Competition for new customers and keeping the old ones interested will always remain intense, therefore adapting to the changing consumer market is vital for the success of any business. Ecommerce has been one of the main drivers of South-East Asia’s Internet economy and is definitely one of the fastest-growing segments globally, where India could emerge as a leader.


As a new-age consulting firm, Praxis Global Alliance is changing the way consulting projects are delivered, uniquely combining practitioner expertise, AI-led research approaches, and digital technologies. We have been supporting Technology and Internet companies to adapt to the changing customer demands and services landscape in India. Follow us and keep track of regular insights from our work and the experiences of our leadership network, visit our website or click to connect.

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